Cargo portal inspires trucking revolution

Freight-service users are rapt with a new way of doing business, writes ADAM GIFFORD.

Online freight scheduling portal eCargo has opened its doors to companies outside the Carter Holt Harvey group, aiming to build up the scale that will attract suppliers and bring savings.

CHH owns 70 per cent of eCargo, which was conceived by software developers eCentric. The online application allows companies to post jobs on the web either to a preferred carrier or to a spot market where carriers can bid for the job.

Sanitarium New Zealand freight manager Robin Green said that after only a month on the system, his company was using 20 per cent fewer trucks and had significantly reduced administrative overheads, freeing up staff time.

"The chap who used to book in the freight would spend all his time on the phone arranging trucks and chasing up deliveries," said Mr Green. "Now he just puts everything that needs to go out into eCargo.

"We get better visibility of freight through having a web-based system and it has improved communication between users and carriers.

"It's taken the static out of the communication chain - is that load going to Turangi or Tauranga? - that's a wonderful gain for us.

"It also gives the carriers better visibility so they can get better use of their trucks, so they are able to quote better rates."

He said Sanitarium's freight bill had already dropped significantly because of the increased efficiency.

Sanitarium, which does about 9500 deliveries a year, has contracted out its land freight operations to United Carriers.

"Without eCargo there was no way we could have made that decision," Mr Green said.

Don Munro, of United Carriers, said greater visibility enabled scheduled backloading.

"It's a totally different concept of dispatching," he said. "We can monitor transactions between cities minute by minute. It allows for much more efficient planning."

Sanitarium can download transaction data from eCargo and analyse performance indicators such as how many deliveries are on time.

"Because we have access to that data, we can work out true freight costs next day, and not wait for a month for the accountants," Mr Green said.

Sanitarium is now talking about ways to use that data to simplify the payment process, with companies exchanging electronic files.

ECargo general manager Nicola Hunter said carriers signed up so far included United, Provincial Freight Lines and Total Transport, who all reported significant gains.

"For one customer, Provincial was using three staff to handle 150 jobs a day," said Ms Hunter. "It's now handling 300 to 500 jobs with two staff.

"Trucks are better used because instead of 80 faxes on a desk, they can see all the data in the same place so they can make better decisions about fleet utilisation. Because they spend less time on the phone, they are able to have higher throughput."

Ms Hunter said the accuracy of the data going through eCargo meant CHH's system was being used more effectively.

"We clean the data on the way through. If there's a bit missing the system throws it back to be fixed, so there's a knock on for anything to do with the supply chain."

The eCargo statistics reveal there are more than 432 registered users from 158 freight operators and 122 freight customers.

eCargo